Brightline Trains Florida posted a net loss of $420.5 million during the first half of 2024, as the company grappled with mounting costs related to its expansion into Orlando and a substantial one-time charge from debt refinancing.
The Miami-based rail service revealed its financial performance in an unaudited quarterly report dated Oct. 10, highlighting significant challenges in controlling operating expenses and liabilities, despite positive gains in both ridership and revenue.
With stations spanning from Miami to Orlando, Brightline saw its operating expenses surge 128.7% year-over-year. Costs increased by $81.4 million to a total of $144.7 million, driven by higher depreciation, labor, fuel, and maintenance expenses as a result of the launch of long-distance services to Orlando.
A critical factor behind the company’s steep loss was a one-time charge of $219.1 million for the early repayment of debt, following a refinancing effort in May. This refinancing, which involved restructuring capital through municipal bonds and loans, is expected to lower future interest payments but added to the company’s financial challenges during the quarter.